A down payment is an initial cost paid by a consumer towards a high-value purchase, like a vehicle, property, etc. It is a percentage of the purchase value. If you finance a bike with a loan, the lending institution may need you to pay a down payment between 5-20% of its value. In other words, a down payment is a difference between the motorcycle cost and the loan amount. It is a set margin by the lending institution. Thus, a down payment allows you to gain ownership of the purchased vehicle without any upfront payment. Most lending institutions offer traditional two-wheeler loans to individuals where you need to pay a down payment.
What Are Zero Down Payment Bike Loans?
A bike loan with zero down payment differs from a regular bike or two-wheeler loan. With such zero down payment loans, the lender does not require to pay a significant amount towards a down payment. Instead, the lender assists the borrower with the full vehicle cost. There will be only a processing fee as a preliminary expense. You will need to pay the processing charge to the lending institution during the loan processing. You can visit a showroom and walk out with your bike without paying anything from your pocket.
Zero-down payment loans are only available to some. Individuals must meet specific requirements and check if the zero down payment bike loan offer is available.
It explains ‘what is a zero down payment bike loan.’ You can avoid being burdened with any advance amount to buy a bike. There will be only initial costs associated with a zero down payment.
Many lending institutions offer options for bike finance in Delhi and other cities. It’s good to decide on a loan after comprehensive research. You may choose an NBFC to acquire a zero down payment bike loan with numerous benefits.
Advantages of Zero Down Payment Bike Loan
Besides an understanding of ‘what is zero down payment bike loan’, it is also important to know its eligibility parameters defined by lending institutions:
- Own a brand-new bike without worrying about initial costs associated with typical financing options.
- The lender will finance the bike’s full cost, that you can repay in manageable EMIs during the loan tenure.
- You need to pay only processing charges, depending on the lender.
- Your cash flow will remain unaffected.
- With NBFCs, you will get the funds to buy a bike quickly. The disbursement process is fast enough.
- You can get zero down payment loans online with minimal documentation.
- The applicant should be an Indian resident, salaried or self-employed.
- If you are a salaried person, your annual income should be Rs.96,000 or more. For self-employed individuals, the minimum annual profit limit is Rs.1,20,000. It may differ for bike finance in Delhi and other states.
- An applicant’s age must be between 18 – 65 years.
- You should have a good credit score to acquire a low-interest bike loan.
- Your chosen bike’s models must be covered under specific schemes for 100% financing.
Thus, a zero down payment bike loan is a financing option offered by a lending institution that covers the entire cost of your bike and saves you from any financial burden.